The Brian Sullivan Blog
  • December 11, 2008 09:06 AM EST by Brian Sullivan

    Why Are Autoworkers' Jobs More Important Than Others?

    The economic headlines were grim this morning.  Initial jobless claims were up 573,000 while continuing claims rose to more than 4 million.  Sara Lee is the latest company to announce layoffs, joining other big names such as DuPont, Dow Chemical and many others announcing cuts just in the past week.

    Keep this in mind: the total number of claims just the week is more than the total number of workers employed at GM and Ford combined (hard to know Chrysler's total number of workers because it is private and the data is kept closer to the vest ... but safe to say it is smaller than GM and Ford).   Yet the auto industry financial rescue plan is in full swing trying to keep these money losing companies in business.

    I am not saying we shouldn't work to keep everyone employed that we can, but the fixation on saving the auto industry jobs while milllions more get laid off and have no "bailout" in Congress makes one wonder why Congress spends so much time fiddling with this industry while Rome burns?

    I have a feeling politics may have something to do with it.

    If we are going to help, we should help everyone equally.   No doubt the former workers at Circuit City, eBay, Macy's and the thousands of other companies cutting jobs are wondering why they aren't getting attention.

Sal`

I say help the big three. Save the jobs of the dealers, mechanics, parts store, suppliers and also have them commit to bring back jobs that they have outsourced. Have our money help them bring back the jobs that they let go to other countries. Have the big ceo's of all the company's get a pay cut they aren't worth what they are getting paid, their companies are falling not growing. Or let them go bankrupted for making cheap and worthless cars, and maybe they will come out stronger.

December 11, 2008 at 4:03 pm

tylerite3124

Toyota and GM sold the same number of cars last year worldwide. GM lost billions and Toyota earned billions. Which company gets it when it comes to building and selling cars? GM needs to declare bankruptcy and rebuild by getting their costs in line with Toyota. The GM business model is dead!

December 11, 2008 at 3:49 pm

Richard Armstrong

Let's just say for arguements sake that a massive tax-payer crippling bailout is just poured into the Big 3. What exactly do the dreamers think is going to happen? Does anyone really think that anything will actually change for the better in Detroit? Stop talking about morality or 3 million jobs or Buy American or free trade or any of the other points designed to confuse the real issue. Detroit has proven for over twenty years that it is incapable of producing cars that can compete with foreign cars. Unless you can change Detroit - no amount of money will work except to delay the inevitable collapse of the currently structured rat's nest that is Detroit.

December 11, 2008 at 3:39 pm

Joseph

I am fascinated by the comment that starts "You Idiot". The best attack on another seems to still be dismiss their thoughts and start with a derogatory remark. By the way, there is no possibility 3 million auto worker jobs will be lost. Ford is not going out of business nor are the non Big 3 automakers plants in the US disappearing. Even if GM did declare bankruptcy that doesn not mean they would cease to exist. Obviously losses within the auto industry would occur (and will regardless of the final solution) and times harder but it won't be scorched earth. I suppose someone will now me an idiot - guess I will be be in good company.

December 11, 2008 at 3:15 pm

Mike - Atlanta GA

Socialism does not work! As the left charges down that road we are headed for disaster!

December 11, 2008 at 3:10 pm

Mike - Atlanta GA

Socialism does not work and will not work!

December 11, 2008 at 3:08 pm

Mike - Atlanta GA

Socialism does not and will not work!

December 11, 2008 at 3:07 pm

Mo Voter

Apparently UAW members actually beleive the BS the union has been feeding them for decades. They are NOT more important than others, and are considerably LESS important than many. I will NEVER buy another union made vehicle, the behavior of UAW members has made sure of that. The total arrogance of the UAW and it's members is almost unbelieveable. For people who are not educated and are not using a skill you are WAY overcompensated. If all three go out of business forever the country will survive and so will most of the associated businesses. I was 100% against the financial industry bail outs, and mortgage bailouts, and I'm 100% against a UAW/GM/Ford/Chrysler bailout too. Let bad companies fail, and let deadbeat individuals fail too. The country will be stronger in the end.

December 11, 2008 at 2:58 pm

Ken

Let them fail, the jobs are going to be lost any way. If they can not compete, they do not need to be in business. THAT IS THE AMERICAN WAY!

December 11, 2008 at 2:40 pm

scott

If god comes back he will want to drive a large suv,not a little inport car.Please help the big 3.

December 11, 2008 at 2:39 pm

Chris

Amen! If they bailout the auto workers then they had better well grandfather in all those that lost their jobs so far (and who will in the near future as a result of this mess). Auto workers are no different than the rest of us (to include all the "branches" that support them). The fact is that the products they sell are high-priced "discretionary" items. I don't "need" a new car, but I do "need" food, water, shelter.

December 11, 2008 at 1:44 pm

iuindiana

If/when GM or Chrysler goes bankrupt do all Chevys or Plymouths on the highways stop working? I doubt it. If/when GM or Chrysler goes bankrupt will those brands of cars never need repair parts or someone to install them? I doubt it, garages and mechanics will be necessary. If/when GM or Chrysler goes bankrupt, will people that own them suddenly have to walk everywhere? I doubt it, so we will still need roads maintained or built. If/when GM or Chrysler goes bankrupt, will people buy other brands? Perhaps, but new cars will be manufactured by someone most likely in the US paying US workers who live in the US economy.

December 11, 2008 at 1:35 pm

conrad prince

I say do not bail them out. They make the vehicals so complicated you can not fix them. It costs $500 to have my spark plugs changed on a 2000 oldsmobile silouette van.I owned a chevy sprint it got 62 miles per gallon. They quite making them.They make cosmetic changes and charge more.They could be making a better product, more reliable, easier to fix, keep it the same unless they have a real improvment,charge less when their overhead costs drop by not changing how the vehicle is made unless for a real reason.

December 11, 2008 at 1:09 pm

scotty

I realize that if the big 3 go under it will have a ripple effect any company closing its doors would however we are talking about bankrupcy not actually closing their doors. I don't believe that people will not buy an car from a company in bankrupcy, the issue would be lowering the price to induce buyers which means lowering cost, specifically labor cost. Next if the companies that provide parts or services to one of the big 3 cannot adjust to the market and secure contracts to other manufacturers then they too should enter bankruptcy and fire their CEO's. One question I have is that Toyota and Honda have plants here in the US making cars are we going to bail them out too since the auto industry can't fail or are we only bailing out the UAW since they are democrat supporters.

December 11, 2008 at 1:01 pm

Adam

The Forgotten Man When person a and b think there is an injustice to person c and pass laws to give money or other perks to person c, they often forget about person d. Person d is the man/women working hard, paying their bills, and keeping a balanced budget. Person d is the real victim when person a and b decide to take person's d money to give to person c.

December 11, 2008 at 12:33 pm

Jack

Does anyone suspect there are massive layoffs planned by the auto companies anyway? Layoffs by suppliers? Aftermarket companies, like parts stores? I keep reading all this speak about this "economic doomsday" which will occur if they don't get their money. Check it out. Look at the sales numbers and inventories. Peoples ability to borrow and spend. (cars or otherwise) Production has to come down. People aren't buying. (or can't--no job) Point is, I suspect the auto and aftermarket companies are already there. Money or no, they will have no choice but to eliminate jobs. This process is part of what is referred to as "Capitalism". This country will have to deal with it, but should not do so with Government intervention.

December 11, 2008 at 12:06 pm

Ward

Please!!! The government is not a capable market participant. Let the companies file chapter 11. Then real CEOs using their own money (or smart investors money) can buy up the companies and return them to their former glory. The big 3 have the worst business model ever. Finally, why is the senate not passing this but has let the fed give trillons to the the financial sector? How is one bailout ok and the other not ok? We need to hold a trail and put the Hank and the rest in prison. Where they belonged. PS: it looks like the financial sector gave more contributions than the car sector. Sorry big 3 50 million in contributions was not enough.

December 11, 2008 at 11:28 am

marsh

A CAR CZAR?? Let them struggle and fail or succeed on their own merits. Where were all of you when other industry jobs were being shipped overseas? How many of you continued to shop at Walmart buying "non-American" made goods. Where were you when the people whose jobs were being shipped offshore ask for support by buying American? Buying the CHEAPER foreign goods? The buyers included union members and leaders in addition to the average citizen. It all depended upon whose ox was being gored. Now it is "Help me, Help Me, The sky is falling" It is not! Declare bankruptcy, reorganize, endure a little pain and emerge stronger or not at all. Do it on your dime, not mine!! Everyone has the opportunity to make bad decisions, but the ramifications of those decisions are part of the freedom to make them. And Michae, calling people who express a viewpoint other than yours Idiots demonstrates the inability of the name caller to understand and consider complex concepts!!

December 11, 2008 at 11:26 am

Kevin

I don't understand why the proponents of the auto bailout think that it is only industry that affects dealers, suppliers, and dozens of other businesses. Inventories are increasing across the board - not just on auto makers lots.What about Textiles, Apparels, Wood Products (Republic for example), Computers, Chemical, General Retail, General Services, etc.... These industries do not have the historical "lobby machine" and is it purely political. The auto industry and the UAW are calling in their "IOU".

December 11, 2008 at 11:15 am

Gerald Beabout

To all who say we need to save GM and Chrysler I call BS. Chrysler is a privately held company whose money pot Cereberus doesn't intend to but their money into so why should we do it for them? General Motors has tried to support to many brands and needs a drastic downsize of these brands to become viable. Let the Chapter 11 do it for them without my money. To big to fail my a$$.

December 11, 2008 at 11:15 am

Bruce

The companies and the unions created this mess. Let them work it out! And the politicians, the electorate needs to wake up! Do not vote the problems (i.e. career politicians) back in the next time we go to the polls.....

December 11, 2008 at 11:10 am

Listening in Texas

If GM stocks are such as great price; why are not more private sector investors buying them up? Where is the infusion of funds from private sector money? Apparently, the investors who would normally come to the table are fearful of their own loss. This bailout is beyond a bad idea. It will become a slippery slope. This week is 14 billion, next month it will be another 25 billion, then 3 months later another 25 billion. There is no end in sight for the turn-around. Especially with the current credit crunch. Where will it end? As many should look at this; what is the exit strategy? Are we simply throwing more money at a problem without any solution? Will this only DELAY and make the situation worse down the road? Now instead of having GM file for BK now and get it overwith; we will have more debt that they will be incurring in the meantime. BK judges have a wide swath of power. It would give the company the ability to shed much of the strangulation holds currently on it. Congress also is not helping. Ease the gas refining laws currently in place, get rid of the cafe standards and ease up on some of their restrictions to allow GM to build their way out of this mess. GM also has other skill sets that can be utilized. Those need to also be explored and implemented as part of their survival plan.

December 11, 2008 at 11:05 am

K B

You are absolutely right! Sadly, what one of your readers doesn't seem to understand is that all of the other companies that have laid off workers also have suppliers and customers that are hurt just like the Big 3. It is the same for each component of the recent and soon-to-be bailouts (financials, homebuyers, etc., etc.) those that were more prudent, managed their lives or businesses better are ultimately going to pay for those that weren't prudent.

December 11, 2008 at 10:53 am

Shawn

Want help you have to be on "THE LIST".

December 11, 2008 at 10:50 am

Donna

Unions -- UAW and Teamsters -- invested many millions of dollars in the last national presidential campaign. My husband's union sent us a letter or called us daily for months urging us to support their candidates. They now feel they have earned a payback from the politicians. This bailout is one of the paybacks. Another will be the card checks that they are wanting. With card checks, paid union organizers try to persuade workers of nonunion companies to sign cards saying that they favor union representation. The cards are often brought to a worker's home by union employees and the worker is persuaded to sign it. This eliminates the prior secret ballot system that was used to unionize a company. How many of you would be brave enough to tell two big burly union guys that you do not want to sign their card check? In this global economy we can no longer afford the costs of running a company by union rules. At my husband's company, only a maintenance worker can flip a switch to reset a piece of equipment. The maintenance worker needs to be called in to flip the switch and he is guaranteed four hours at time and a half. All work stops until he arrives. He flips the switch and goes home. If he is needed again that shift, the work stops and he is called in to flip the switch and is paid another four hours at time and a half. Gee, I wonder why so many of our jobs are now in India, Mexico, China, Ireland, etc.????

December 11, 2008 at 10:48 am

about this blog

  • Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block. Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.

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